In the operation of a certain production machine

Assignment Help Operation Management

Reference no: EM131427619

In the operation of a certain production machine, one worker is required at a direct labor rate = $10 per hour. Applicable labor factory overhead rate = 50%. Capital investment in the machine = $250,000, expected service life = 10 years, with no salvage value at the end of that period. Applicable machine factory overhead rate = 30%. The work cell will operate 2000 hours per year. Rate of return is 25%. (a) Determine the appropriate hourly rate for this work cell. (b) Suppose that the machine were operated three shifts, or 6000 hours per year, instead of 2000 hours per year. Determine the effect of increased machine utilization on the hourly rate compared to the rate determined in (a).

Reference no: EM131427619

Questions Cloud

Find the number of machine fractions needed per shift : In a simple four step manufacturing process, the scrap rates for processes 1,2,3, and 4 are 3%,4%,5% respectively. the demand is 1000 good parts per shift (8 hour shift). Assume the scrap costs for processes 1,2,3, and 4 are $5,$6,$7, and $10 respect..

Any internal attribute of the organization : A strength can be thought of as any internal attribute of the organization that is helpful in achieving corporate objectives, a weakness can be thought of as any internal attribute of the organization that is a hindrance in achieving corporate object..

What are high risks in different businesses : What are “High Risks” in different businesses, automotive, and health? Create 3 cases of each category ( businesses, automotive, and health) and analyze the “Risks” and “Insurance: factors.

Identify the problem that management needs to solve : MGMT1120 Course Project Instructions. Identify the problem that management needs to solve. What priority decision needs to be made? Make sure you describe the nature of the problem and why it is important; i.e., what impact will this decision hav..

In the operation of a certain production machine : In the operation of a certain production machine, one worker is required at a direct labor rate = $10 per hour. Applicable labor factory overhead rate = 50%. Capital investment in the machine = $250,000, expected service life = 10 years, with no salv..

Evaluate the importance of the circular flow model : ECON-160 Macroeconomics Assignment. Critically analyze and evaluate the importance of the circular flow model in an economy and use it to explain why the Gross Domestic Product equals Aggregate Expenditure and Aggregate income

What is the percent idle time of the worker : A worker is currently responsible for tending two machines in a machine cluster. The service time per machine is 0.35 min and the time to walk between machines is 0.15 min. The machine automatic cycle time is 1.90 min. What is the percent idle time o..

Organization need to do to be in cultural compliance : If a healthcare organization cannot recognize cultural values, it can be a devastation to the company and community. What does an organization need to do to be in cultural compliance? And is cross culture practiced in the area you live in or within t..

Global marketing consulting firm : You work for a global marketing consulting firm. Concerned about the United States' negative balance of trade, a trade deficit, you are being asked to assist several clients in their lobbying efforts to increase the United States' exports to other co..

User Account

All Pages